Question
Carrie's Cleaners is home cleaning business based in Gainesville, Florida. The firm cleans homes in the perfectly competitive local home cleaning market. Carrie's Cleaners employs
Carrie's Cleaners is home cleaning business based in Gainesville, Florida. The firm cleans homes in the perfectly competitive local home cleaning market. Carrie's Cleaners employs two separate teams to clean homes. The graph below depicts the marginal cost curves for each team, as well as the firms overall marginal revenue curve.
a.Identify the total number of homes that Carrie's Cleaners cleans per day.
b.Identify the number of homes that Team 1 cleans per day.
c.Identify the number of homes that Team 2 cleans per day.
d.Suppose that the price of a home cleaning falls to $60 during a recent recession. Identify the number of homes that Team 1 cleans per day.
e.Suppose that the price of a home cleaning falls to $60 during a recent recession. Identify the number of homes that Team 2 cleans per day.
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